Indian Govt Refuses To Accept Bitcoin As Currency; Can Crypto Bill Ban Bitcoins?

With the start of winter session of the Parliament from November 29, a lot of reforms are expected to undergo, of which a major one is the Government’s stance on the use of cryptocurrencies in India.

Replying to the Lok Sabha on the first day of the Winter session, Finance Minister Nirmala Sitharaman said that the government has no proposal to recognise Bitcoin as a currency in the country.

Here’s everything you need to know about the government’s opinion and further expectation over cryptocurrencies in India.

FM Refuses to Recognise BTC

As per a PTI report, Finance Minister Nirmala Sitharaman has stated that the government has no proposal to recognise Bitcoin as a currency in the country.

When asked about whether the government is aware of the ongoing transactions and volumes of bitcoin across the world and India, FM clarified in the Lok Sabha that the government does not collect data on Bitcoin transactions.

Further, in response to whether the government has any proposal to recognise Bitcoin as a currency in the country, the minister responded by saying, ‘No Sir’.

Bitcoin (BTC) is the most popular cryptocurrency in India, which also means that it is traded the most in the country. 

It is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties. 

The crypto was introduced by an unidentified group of programmers as a cryptocurrency as well as an electronic payment system in 2008, and is reportedly the first decentralised currency where peer-to-peer transactions can be conducted without an intermediary.

Govt’s Crypto Bill

FM Sitharaman’s statement on recognising bitcoin as a currency in the country comes at a time when the government is looking forward to drafting a cryptocurrency bill, the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the winter session.

However, the Bill seeks to allow only a few selected private cryptocurrencies in the country and ban out all the remaining ones to promote underlying technologies while allowing an official digital currency by RBI.